Mumbai, October 17, 2026 (Yes Punjab News)
Indian equity benchmarks ended the week on a positive note, extending their gains for a second consecutive week as investors drew confidence from the rupee’s recovery following the Reserve Bank of India’s special dollar window for oil marketing companies.
The Nifty rose 0.65 per cent on the final trading day to close at 23,146, taking its weekly gain to 2.78 per cent. The Sensex advanced 413 points, or 0.56 per cent, to settle at 74,729. It gained 3.11 per cent over the week.
Market sentiment had come under pressure earlier as consumer inflation remained near the upper end of the RBI’s tolerance band and wholesale price inflation came in higher than expected. The data pushed benchmark bond yields to multi-year highs, while the RBI’s decision to increase the daily cash reserve ratio maintenance requirement to absorb surplus liquidity added to investor caution.
Confidence improved after the central bank opened a special dollar window for oil marketing companies. Tighter hedging norms also supported the rupee’s rebound, analysts said.
Expectations of a possible review of long-term capital gains (LTCG) tax and securities transaction tax (STT), softer crude prices and easing bond yields further supported risk appetite. Investors also focused on companies reporting strong second-quarter results and business updates, although gains remained concentrated in large-cap stocks.
The information technology sector led the rally on the back of robust earnings and positive management commentary. Healthcare and pharmaceutical stocks lagged, while fast-moving consumer goods shares faced pressure over concerns about margin compression due to elevated input costs.
Broader markets delivered mixed returns. The Nifty Midcap 100 gained 0.58 per cent during the week, while the Nifty Smallcap 100 slipped 0.12 per cent.
Foreign institutional investors (FIIs) turned net buyers of Indian equities worth Rs 11.66 billion on Friday as selling pressure eased. However, they remained net sellers for a ninth consecutive week, with weekly outflows moderating to Rs 89.91 billion from Rs 302.94 billion in the previous week.
Domestic institutional investors (DIIs) remained net buyers for a ninth straight week, recording net purchases of Rs 78.13 billion, although they sold equities worth Rs 36.61 billion on Friday.
Analysts said the recovery’s sustainability would depend on earnings growth extending beyond IT, with revenue and margin performance in financials, consumption and industrials under close watch.
Investors will also track India’s October purchasing managers’ index (PMI), US jobless claims and Japan’s inflation data for signals on domestic demand and global interest-rate expectations.
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